Shares, Debentures And Bonds - SS1 Economics Past Questions & Answers - page 1

1

What are shares?

A

Units of ownership in a company.

B

A type of debt instrument.

C

A type of government security.

 

CORRECT OPTION: a
2

What are debentures?

A

Units of ownership in a company.

 

B

A type of debt instrument.

C

A type of government security.

CORRECT OPTION: b
3

What are bonds?

A

Units of ownership in a company.

B

A type of debt instrument.

C

A type of government security.

 

CORRECT OPTION: c
4

What is the main difference between shares and debentures?

A

 Shares give you ownership in a company, while debentures do not.

B

Debentures give you ownership in a company, while shares do not.

C

There is no difference between shares and debentures.

CORRECT OPTION: a
5

Are bonds typically issued by governments or companies?

A

Governments

B

Companies

 

CORRECT OPTION: a
6

Define shares. 

 

Shares are units of ownership in a company.

7

What is the difference between debentures and bonds?

Debentures are a type of debt instrument that companies can issue to raise capital while bonds are also a type of debt instrument, but they are typically issued by governments rather than companies.

 

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